Inside the White House with D.C.'s most wired reporter. Sign up for Mike Allen's Axios AM.

Nasdaq sues IEX stock exchange over patent infringement

The Nasdaq has filed a lawsuit in New Jersey federal court against IEX, a young electronic stock exchange, for allegedly infringing on seven of its patents by hiring former employees with knowledge of its technology.

Why it matters: IEX is part of a recent wave of new stock exchanges aiming to change certain practices and cultural elements. IEX itself gained fame thanks to Michael Lewis's book "Flash Boys," which chronicled the rise of high-frequency trading on Wall Street, and founder Brad Katsuyama's desire to start a "fairer" exchange.

“Similar to our exchange application process, this is yet another attempt by Nasdaq to obstruct an innovative new competitor," IEX said in a statement.